Following up on a previous report, Gurman, a well-respected Apple blogger, notes that two versions of the 5se are floating around Apple's campus: One has an older A8 processor (found in the iPhone 6) while another has a newer A9 processor (found in the 6S).
The thinking behind the decision to include a newer CPU is this: The iPhone 7, which is rumoured to be coming later on this year, will include an updated A10 processor and Apple doesn't want the smaller version of the phone to fall behind.
Gurman also claims the iPhone 5se will come in two storage versions: 16GB and 64GB. There will be no 128GB version, an option that is currently available on the iPhone 6s.
The more powerful processor also enables better integration with Siri, according to the report. Siri can, with a more powerful CPU, be "always on" and listening, ready to respond to the "Hey, Siri" command.
Apple is reportedly preparing the iPhone 5se for a March launch date ahead of a new iPhone 7 in September.